Ithaca Energy (LSE:ITH) reported strong operational and financial performance for 2025, increasing average production to 119,000 barrels of oil equivalent per day (boe/d) and exiting the year at approximately 148,000 boe/d. The company also reduced unit operating costs and delivered adjusted EBITDAX of $2.0 billion.
Although Ithaca reported a statutory loss for the year due to a non-cash tax charge linked to the extended UK Energy Profits Levy, the business generated higher operating cash flow and expanded its available liquidity to $1.5 billion. The group also enhanced shareholder returns by updating its dividend policy and distributing $500 million to investors during the year.
Operationally, the company made significant progress on its West of Shetland development portfolio. The Rosebank project has entered its final development phase, with first production expected in 2026 or 2027. Meanwhile, the Cambo and Tornado projects advanced through key regulatory and technical milestones and are targeting final investment decisions within the next year.
Ithaca also strengthened its position on the UK Continental Shelf by increasing its interests in the Seagull field and the Cygnus gas field. Alongside this expansion, the company maintained high levels of activity across its core producing assets, supporting its target of sustaining production above 120,000 boe/d over the medium term and reinforcing its role as a significant operator and infrastructure partner in the North Sea.
The company’s outlook reflects a combination of operational strength and financial challenges. While production growth and efficiency improvements support the business, profitability remains pressured due to tax impacts and earnings volatility. Technical indicators currently suggest bearish share price momentum, although the company’s relatively high dividend yield provides some valuation appeal despite ongoing concerns around negative earnings.
More about Ithaca Energy
Ithaca Energy PLC is a UK-based independent oil and gas company focused on the UK Continental Shelf. Its portfolio includes producing assets and development projects such as Captain, Cygnus, Seagull, Rosebank, Cambo and Tornado. The company’s strategy combines organic investment in existing fields with consolidation opportunities in the UKCS and selective international expansion, aiming to grow production, reserves and long-term shareholder returns.
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